A strong late morning rally in the gold market ended up with the April Gold contract settling above the $1100.00 mark once again. Once again this mornings economic releases were weak again for the economy as initial jobless claims numbers showed the claims for unemployment benefits rose unexpectedly 22,000 to 496,000 last week. Analysts had expected a breakdown to 455,000. Also Durable Goods fell 0.6% the lowest since August of 2009. These numbers have followed a slew of weak economic data this week.
In lieu of this weak economic data the gold market has stayed resilient. Because of the general uncertainty
of the global marketplace, it is my opinion that investors are looking to continue a policy of parking some of their investment strategies in precious metals, primarily gold. Therefore demand has stayed strong. In my belief, keep an eye out for U.S. dollar movement as a precursor for Gold to possibly head higher.
Friday February 26th Economic releases
Existing Home Sales-9:00
Swing numbers for 2/26
Resistance #2- 1120.7
Mike Daly / Gold Specialist